Demo Car Sold as New from Nissan Dealership? (Please Help)

Lrt84 on 11/12/2015 - 12:44
Last edited 11/12/2015 - 12:46

I have bought a new car from a Nissan dealership in QLD.

All the contract and finance document stated it is a new car.

Until recently we found the car was registered 6 months prior sell to us.

The new car warranty was count from the date registered not from the date we bought it.

We have filed a case with Fair Trading, and the dealership come back to us saying the car is definitely brand new but only registered prior selling to us. They can "extend" the warranty back to 3 years which it should be. But it can only be serviced at that particular dealership service centre. (Under new car warranty, we have a choiice to go to ANY Nissan service centre).

I want to know:

  1. How can I know it is a brand new or demo car?
  2. Does the dealership try to fool us it is a brand new car? if not, why can't we use any services centre?
  3. Should I accept the "extension" offer and close the case?
  4. or should I refuse the offer and go to tribunal?

Thanks for your help.

Automotive

Comments

  • nocure on 11/12/2015 - 12:48

    How many km's on the odometer ?

    • rt84 on 11/12/2015 - 12:52
      +1

      around 54 km showed on the board when we pick up the car. thanks

      • nocure on 11/12/2015 - 12:55
        -1

        Few test drives there.

        • [Deactivated] on 11/12/2015 - 13:38
          +3

          The kilometres won't necessarily be from test drives. New cars get kilometres on them as they are moved onto/off ships, around storage yards, and on/off trucks. Fitting options can add more, as will transferring the car between dealership. 50 KM wouldn't be considered abnormal in this regard.

        • spackbace on 11/12/2015 - 13:49
          +3

          @Thrift:

          Usually less than 20km from transport. 50km might be from a couple of demos yes, but again that fact doesn't negate it as a 'new' car, as many new cars are demoed using trade plates.

          The key point about this being a demo is being registered before.

        • [Deactivated] on 11/12/2015 - 14:00

          @Spackbace: I'm not disagreeing that it's a 6-month old car that has spent 17% of its warranty - just noting that the KMs, whilst on the high end, aren't necessarily demo kilometres.

          Dealers often register their stock to inflate sales figures:

          The FCAI figures are based on registrations rather than sales transactions. That allows dealers to reach their sales targets — and collect bonuses worth hundreds of thousands of dollars — without finding a customer.

        • spackbace on 11/12/2015 - 14:06
          +2

          @Thrift:

          I know ;) You forget I work in the biz :P

  • aggregate on 11/12/2015 - 12:53
    +7

    If the car is registered, then it is not new. 50km+ is not new.

    Tell the dealer that the extended warranty is not like for like and ask for a better arrangement.

    If the second arrangement is not satisfactory, go to the tribunal.

    Also, check the car specs and make sure that you got what you paid for.

  • digitalterrorist on 11/12/2015 - 12:55
    +2

    How many kilometres did the car have on the clock when you bought it? That will somewhat determine if it's new or "demo". 6 months is a bit long to have it "hanging" around the dealership - it may have been a manager's car as well not a demo. Either way you'd be hard pressed to call that "new".

    Sounds like the dealership is trying to cover up the fact they sold you a demo by offering the "warranty" but only at their dealership as Head Office wont honour any such agreement.

    At the end of the day, 6 months ago it not going to have a huge impact on resale price when you sell it. However I'd be a bit pissed about paying a "new" price for a demo car.

    I'd go to tribunal and ask for 6 months warranty to be the 3 years as far you are concerned and also compensation for making misrepresentations about the age of the car.

    • digitalterrorist on 11/12/2015 - 12:59

      Just saw your post https://www.ozbargain.com.au/node/224853#comment-3286382 - 54km is not that bad actually, that's pretty ok. Not ideal. Might have had a few test drives around the area.

      Not unusual to have a new car to have up to 20km on the clock as it's driven off a ship around a dock - and then driven by the dealership to do their pre-delivery inspection checks.

      • RockyRaccoon on 11/12/2015 - 13:09
        +2

        The difference here is not the KM's, its the fact it was previously registered, Dealers dont regfister cars to drive off a dock, or from back lot to showroom. They have trade plates for that situation

        • digitalterrorist on 11/12/2015 - 13:16
          +1

          KM's do help to give context to the situation. If it had 500kms on it that would be a dead ringer for a demo. If it it had 100km you could argue it wasn't new. If it only had 10km then you'd be hard pressed to argue it was not "new".

          I did say in my previous post "I'd go to tribunal and ask for 6 months warranty to be the 3 years as far you are concerned and also compensation for making misrepresentations about the age of the car." - personally, i dont think the car is new and has a case to argue…

        • RockyRaccoon on 11/12/2015 - 14:06

          @digitalterrorist: Maybe so, but consider this. I bought a demonstrator, that was already registered, by 3 days and had 5km on the clock. Now that would more than likey qualify for a new car from this Nissan dealership.

          I really doubt if the dealer I bought from would have sold it as a demonstrator if they could have sold it as "new"

  • RockyRaccoon on 11/12/2015 - 13:04
    +2

    Our opinions wont really be of any use, its going to be fair trading who decide. So I wouldnt cose out the case with them. And the dealer sint giving you anything at the moment.

    My Opinion, for what good it will do, is that the car was registered 6 months earlier and NIssan say that is the date the warranty starts, so by their definition it's not new, otherwise they would give you warranty from the day you bought it. I am talking Nissan NOT the Dealer

    The same applies for a TV, that someone returns for change of mind. If they do this, then regardless of use, it can never resold as new, it becomes "refurbished"

    • kipps on 13/12/2015 - 12:13

      Fair Trading must determine the case according to the law, which, in Queensland, is regulated by the Motor Dealers and Chattel Auctioneers Act….

      Schedule 3 of the Act plainly defines a used motor vehicle to mean a vehicle that has been registered.

      The dealer has been caught out, and is on toast.

  • Agret on 11/12/2015 - 13:20
    +1

    You should take it to small claims court, it's only $50 or so to have a hearing. I doubt they would side with the dealer as the car was registered prior to buying and they have misrepresented the product.

  • wcm8382 on 11/12/2015 - 13:21
    +3

    Sorry to hear about your issue. Your decision should be based on how much you value your time. I think you should hold off taking this matter to the tribunal and first try to negotiate a better deal with the dealership. To be honest, what they have offered you is not good enough. They have indirectly acknowledged that they had made an error (whether intentional or not), so they really should be taking responsibility for this, and you shouldn't have to pay for it. Whether they budge, who knows, but give it a go, and if all else fails, then take them to the tribunal. I hope it works out well for you.

  • shadowarrior on 11/12/2015 - 14:10

    We had a similar case but for us, we were looking for Demo cars. So we got an upgraded model with all extras at the same price of the base model and it had 72Kms on the clock. Dealer agreed to give us the normal warranty plus 1 year extra if we service from their dealership (was part of the deal). The warranty started from December and we bought it in Jan. The car wasn't really a demo, but the dealer had registered a bunch of new cars to get the stats of 'sales' for their showroom.

    If you specifically asked for new, aka never registered before, then go back and ask them to compensate you and manufacturers warranty start from the day they gave you the key.

  • tebbybabes on 11/12/2015 - 14:20
    +2

    It doesn't matter if it had 5km or 54km or 540kms on it. If it was registered prior to you purchasing it - it is, plain and simple, a used car.

    While the low kms will assuage you of it's 'newness', as a seller/dealer, they can only advertise it as used albeit in 'as new' condition. There is NO WAY it can be sold as new as it had already been registered! Once it's registered, someone already owns it - whoever that may be, even if it is the dealer.

    From what the OP writes, it looks like the dealer gave him a raw deal and whatever amends they're trying to make don't cut it.

    There is already something wrong with the deal as the contract was for a new vehicle. No one is going to side with the dealer because by definition, he wasn't given a new car.

  • oscargamer on 11/12/2015 - 14:47
    +1

    bigger picture…..what is the build date?

    many dealers register cars to 'get a sale'. they actually haven't been sold to a person, just had plates attached.

    • kipps on 13/12/2015 - 11:46

      …. in whose name do they register the car in? How exactly does this "get a sale"?

      Nevermind - worked it out - it is the dealer registering the car, probably in their own name, to inflate/bring forward sales figures. Sounds dodgy as hell.

  • RichieDuck on 11/12/2015 - 15:06

    Go back to dealer demand your money back or Fair Trading or Tribunal. Or wait until a busy Saturday park it out the front of the dealer with stickers all over saying this dealer sold us a new car which was a demo and watch them coming running out.

    Or keep calling the dealer principal and demand a refund.

    Or ACA they love stories like this.

    Or do a youtube video.

  • t_c on 11/12/2015 - 16:04
    +2

    Did they still charge the dealer delivery fee?

  • Mumbles on 11/12/2015 - 17:48
    +6

    How can I know it is a brand new or demo car?

    It's been registered, the probability it is an ex-demonstrator is 99.9%. Don't be confused by the other posters that mention possible scenarios about boosting monthly sales figures, these are the rarer circumstances.

    Does the dealership try to fool us it is a brand new car? if not, why can't we use any services centre?

    I would say (probably) YES they are fooling you. The formal warranty under "Nissan Australia" assures you protection for the advertised 3 years. Meaning that if your car engine and transmission blew up at 2 years 364 days then you could take it into ANY Nissan dealership (eg. Perth, Brisbane) and it will be repaired under warranty.

    What your dealership is saying is:
    A) Nissan Australia thinks your car is 6 months old so it has 2 years and 6 months left of the official nationwide manufacturer warranty.
    B) the dealership is adding 6 months of dealership warranty (a non-nationwide warranty). Since its their own specific dealership it means Nissan Australia don't know about the deal. So when your engine blows up 2 years and 7 months you are at the mercy of the 1 dealership owner.

    I suggest you research the difference between "manufacturer warranty" versus dealer "extended warranty".

    Should I accept the "extension" offer and close the case?

    DEFINITELY NO!!! Nationwide manufacture warranty is million times better than a dealership specific extended warranty.

    Firstly, under the nationwide warranty its Nissan Australia that is footing the bill for the labour and parts. The owner of the dealership won't care how expensive it costs to repair your car since it is Nissan Australia who is paying. Whereas in the dealership's own extended warranty its the dealer who is paying to repair your car AND THEY DO CARE ABOUT THE COST OF REPAIR! Expect a dodgy repair or refusal to fix your car.

    Secondly, the nationwide warranty means you are covered nationwide and can take your car into ANY Nissan dealership for repairs under warranty. Imagine if your car fell apart during an interstate holiday. Under the manufacturers nationwide warranty you could drive to the nearest dealership and Nissan Australia would pay to get it fixed there. Under the dealer extended warranty you would have to pay a tow truck to carry it back to the dealership, then beg the dealership mechanics to hurry up and examine it, then hope the dealership owner likes you and agrees to pay all the repair costs at their personal expense.

    or should I refuse the offer and go to tribunal?

    For your situation I recommend refuse and demand a refund. A car is the second most expensive purchase a person can make (house is the most expensive).

    Cars are already money pits and dealer extended warranties are often an expensive time consuming legal fight.

    The dealer sounds dodgy. Ask for a 100% refund of everything including deposit. Go to another less dodgey Nissan dealership get the same deal BUT make sure its an unregistered new car with 3 years manufacturer backed warranty. Otherwise you could buy an official ex-demonstrator from another dealership which has the warranty, kilometres and price that you are happy with.

    A disclaimer is that I am not a lawyer and have not worked in the car industry. Best to seek your own legal, financial and mechanical advice in fighting your new car contract.

  • [Deactivated] on 12/12/2015 - 09:42
    -1

    Dealers register cars and keep them for 6 months to negate tax.
    Dealer warranties are not financed by the manufacturer. They are financed by insurance companies, so your warranty is actually an insurance policy.
    If your car goes wrong under warranty the dealer will fix it and claim off the insurance provider.

    • kipps on 13/12/2015 - 11:50

      "Dealer warranties are not financed by the manufacturer. They are financed by insurance companies, so your warranty is actually an insurance policy."

      The suggestion that "Dealer warranties" is/are "actually an insurance policy" is plainly wrong at law. I sincerely hope you don't tell customers that if you're selling cars.

      First, there is no guarantee that there is even a legitimate insurance company backing them. I can commence a car dealership overnight and write tonnes of extended warranty policies, and go into liquidation tomorrow. The customer will have done their dough.

      If the dealer becomes insolvent, then its customers have NO prospect of getting paid anything if they need to call upon the dealer warranty.

      Insurance is regulated by the Cth Insurance Contracts Act, and insurers are much less likely to become insolvent compared to dealers.

      Even if there is an insurer involved, the customer cannot claim on the policy as they are not the insured (the dealer will be).

      The dealings between the dealer and the insurer are of no consequence to the customer. They still need to be satisfied that the dealer will be around to support them.

  • Love a bargain on 12/12/2015 - 12:46

    Just a thought. Having low-ish milage on the clock just means it hasn't been driven around much, it doesn't mean the car hasn't been used as a demonstrator at the dealership during that them (i.e. the demo cars that everyone, esp the kids, play with in the showroom). I wouldn't call that a brand new car, despite the low milage, either.

  • blackdiamond on 12/12/2015 - 22:49
    +2

    Demand a large discount, and manufacturers warranty at the very least. A dealership warranty isn't worth the paper it's printed on. Once registered its classified as a demo.
    Similar thing happened to me on our first new car purchase with Nissan. Hadn't been registered but had been used as a demo. I told them I wasn't happy and said I would cancel the sale. They offered a new car, but would have to wait 3months and in the mean time would provide me a loan car or they would take $3k off the price. I was nervous about driving a loan car so took the discount.
    When we upgraded, different dealer (still nissan) tried pulling a shifty on my idiot husband. (Provided completely different car to contract, no premium paint, manual instead of auto and no price change) when he turned up in the car I flipped. Called the dealership and was told "tough luck, he took the car" exact words. I took it up with Nissan head office. Fair to say they pissed off the wrong person… They were forced by head office to take the car back and full refund even though it had been driven a couple of days plus massive apologies and action to be taken against the dealership. They have to honour that contract. Read through your fine print there is a clause that states the vehicle must be the same as the one in the contract, even covers you for price decreases by the manufacture while waiting for delivery. If you purchased a new car they have to supply you with a new car.

  • chumlee on 12/12/2015 - 23:14

    Dealer should be careful on wording of the warranty back to 3 years as it could be considered third line forcing which is in contravention of NCCP Act if they insist it an only be serviced by them

  • [Deactivated] on 13/12/2015 - 11:58

    Im sorry guys, but 50km is new, it is not a demo. A demo car usually has 100's or up to 2-3000km on the clock. This car is just pre registered for tax purposes, and those 50km would entail movements from the factory/ship/around the car yard/to the petrol station. What the dealer did however, is dishonest. The dealer should specifically state that the car was already registered, and 6 months of the factory warranty is gone. If this was the case, they should have incorporated appropriate discounts into the car price.

    • kipps on 13/12/2015 - 12:09
      +1

      OP, as you bought the motor vehicle in Qld, the Motor Dealers and Chattel Auctioneers Act provides the following definition in Schedule 3:

      used motor vehicle—

      (a) generally, means—
      (i) a motor vehicle that has, at any time, been licensed or registered, whether under a law of this State or another State; or
      (ii) a motor vehicle that, had it not been registered as mentioned in subparagraph (i) for use for demonstration or sales promotion, would have been a new motor vehicle; or
      (iii) a used imported vehicle; or
      (b) for part 3, division 6, see section 98.

      Ie, you were sold a used vehicle. All comments on this page to the effect that the odometer matters are demonstrably wrong.

      • spackbace on 13/12/2015 - 15:25

        Yep. Car registered, it's a demo. No 2 ways around that. I think some people missed that bit of info

    • RockyRaccoon on 13/12/2015 - 19:36

      Sorry thorton82. but it is used.

      I bought a registered Camry. It was sold as an "undriven demonstrator". Registered on the 31 of December, I bought it on the 5th of January. It had 5km on the odometer.

      Why did I buy this used new car. The price. It was reduced $3000.

      The dealer had 5 to choose from.

      They registered it to get advantage of end of month bonuses.

      They thought the bonus was going to be $3K for them. They discovered the bonus was only $1.5K As I paid a deposit of $500 by credit card, my deal was fixed and I got the 3K off. The other 4 demonstrators were then re-advertised at $1.5K off as no one else had put a deposit down.

      These were cars registered for 6 days NOT 6 weeks or as in the OP's case 6 months.

      Now if what you say is true, they could have sold these already registered cars as new. Dealers dont give away what they dont need to. Just like Ozbargainers :)

      Some however do comply with the law.

  • t_c on 20/12/2015 - 16:11

    any update

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